Many businesses encounter former employees, known as “boomerang hires,” expressing interest in returning. Despite their familiarity and previous contributions, some employers reportedly offer these individuals lower compensation than they earned prior to leaving. A recent Quartz article highlighted this trend, noting that workers in creative fields often receive significantly reduced pay when former employers reach out for their services.
Several employers attribute this trend to budget constraints and the increasing reliance on artificial intelligence (AI). However, evidence suggests that many AI initiatives have not generated meaningful financial benefits for companies. The New York Times reported that a significant portion of businesses using generative AI have experienced little to no positive impact, with many abandoning their AI pilot projects.
Boomerang hires can be advantageous for companies due to their prior experience and familiarity with the organizational culture. Additionally, these individuals may bring fresh insights and knowledge acquired from their time away, which can be beneficial for the employer.
There are risks associated with offering lower pay to returning employees. Such offers may be perceived as disrespectful and could lead to negative feelings, potentially impacting workplace morale. Furthermore, legal implications exist in some jurisdictions where labor laws include provisions against retaliation.
With a competitive job market and a growing emphasis on attracting skilled talent, employers should seriously consider the potential drawbacks of lowball offers to returning employees. Businesses that undervalue someone with proven experience may miss out on a valuable opportunity to enhance their workforce. Overall, treating returning employees fairly could play a crucial role in maintaining a positive work environment and fostering loyalty.
Source: https://www.theguardian.com/business/2025/oct/05/boomerang-hires-business